New York — The amount of natural gas in US storage facilities increased 46 Bcf to 2.354 Tcf in the week that ended August 3, the US Energy Information Administration reported Thursday.
The build was slightly larger than an S&P Global Platts' survey of analysts expected. The analysts' consensus call was for a 45 Bcf injection.
The injection was larger than the 29 Bcf build reported in the corresponding week in 2017, but again lower than the five-year average addition of 53 Bcf, according to EIA data.
As a result, stocks were 671 Bcf, or 22%, below the year-ago level of 3.025 Tcf and 572 Bcf, or 20%, under the five-year average of 2.926 Tcf.
The injection was larger than the 35 Bcf build reported a week earlier as cooler weather dampened gas-fired power generation in multiple regions and production ticked up in the Northeast and Gulf of Mexico, according to data from S&P Global Platts Analytics.
The NYMEX September gas futures contract slipped 1 cent to $2.94/MMBtu following the 10:30 am EDT storage announcement.
The EIA reported a 23 Bcf injection in the East to raise stocks to 575 Bcf, compared with 670 Bcf a year ago; a 27 Bcf build in the Midwest to lift inventories to 579 Bcf, compared with 769 Bcf a year ago; a 2 Bcf addition in the Mountain region to nudge stocks up to 148 Bcf, compared with 202 Bcf a year ago; a 5 Bcf withdrawal in the Pacific to drop inventories to 245 Bcf, compared with 290 Bcf a year ago; and a 1 Bcf pull in the South Central region to drop stocks to 807 Bcf, compared with 1.095 Tcf a year ago.
Total inventories are now 97 Bcf below the five-year average of 672 Bcf in the East, 153 Bcf less than the five-year average of 732 Bcf in the Midwest, 32 Bcf under the five-year average of 180 Bcf in the Mountain region, 71 Bcf below the five-year average of 316 Bcf in the Pacific, and 219 Bcf beneath the five-year average of 1.026 Tcf in the South Central region.
There are 12 to 14 more weeks of injections likely before the flip to withdrawal season based on EIA's historical data. Over the past five years, stocks have increased by 903 Bcf between now and early November. If storage increased in line with the average, the heating season would begin with 3.25 Tcf in storage. However, due to elevated production, Platts Analytics is estimating the season will start at 3.37 Tcf at a roughly 500 Bcf deficit to normal.
